Do managers know what their customers think and why?

The ability of a firm’s managers to understand how its customers view the firm’s offerings and the drivers of those customer perceptions is fundamental in determining the success of marketing efforts. We investigate the extent to which managers’ perceptions of the levels and drivers of their customers’ satisfaction and loyalty align with that of their actual customers (along with customers’ expectations, quality, value, and complaints). From 70,000 American Customer Satisfaction Index (ACSI) customer surveys and 1068 firm (manager) responses from the ACSI-measured companies, our analyses suggest that managers generally fail to understand their firms’ customers in two important ways. First, managers systematically overestimate the levels of customer satisfaction and attitudinal loyalty, as well as the levels of key antecedent constructs such as expectations and perceived value. Second, managers’ understanding of the drivers of their customers’ satisfaction and loyalty are disconnected from those of their actual customers. Among the most significant “disconnects,” managers underestimate the importance of customer perceptions of quality in driving their satisfaction and of satisfaction in driving customers’ loyalty and complaint behavior. Our results indicate that firms must do more to ensure that managers understand how their customers perceive the firm’s products and services and why.     

Travel philanthropy and sustainable development: the case of the Plymouth–Banjul Challenge

Travel philanthropy is an evolving phenomenon. It owes its origins to rising frustrations with conventional aid and traditional philanthropic giving and is seen as development assistance enabling resources to flow directly from the tourism industry into community development and conservation initiatives. Philanthropists have long sought to achieve social transformation, and travel philanthropy in all its forms has evolved through the democratization of charity, as a kind of “doing good” through “giving back” whilst travelling. This paper evaluates values, practices and impacts of traditional, modern and post-modern philanthropy. Drawing upon evidence emerging from a longitudinal study, which involved the retrospective evaluation of personal diary entries, participant observations and semi-structured interviews about the transcontinental Plymouth–Banjul (car) Challenge (PBC), it exemplifies how an initiative can evolve across all three philanthropic approaches. It further debates critical understandings of the problematic travel philanthropy concept and its role in stimulating sustainable development in sub-Saharan Africa.     

The Impact of Insurance Prices on Decision Making Biases: An Experimental Analysis

This article tests whether the use of endogenous risk categorization by insurers enables consumers to make better‐informed decisions even if they do not choose to purchase insurance. We do so by adding a simple insurance market to an experimental test of optimal (Bayesian) updating. In some sessions, no insurance is offered. In others, actuarially fair insurance prices are posted, and a subset of subjects is allowed to purchase this insurance. We find significant differences in the decision rules used depending on whether one observes insurance prices. Although the majority of choices correspond to Bayesian updating, the incidence of optimal decisions is higher in sessions with an insurance option. Most subjects given the option to purchase actuarially fair insurance choose to do so. However, fewer subjects purchase insurance when the probability of a loss is higher.     

Office automation: Assessing energy implications

The authors estimate the net-energy intensity of manual and automated offices. Subjective probability distributions have been used to characterize the considerable uncertainty about the value of a number of the coefficients that are required in such calculations. The current generation of automated offices appears to be more energy-intensive than conventional offices. The energy savings made possible by substituting electronic mail for conventional mail is small compared with this difference. The net impact of substitution for travel will, over the next decade, probably represent less than a few percent of the total energy used in all commuting and other business-related travel and could be either positive or negative.     

Resource-performance relationships in industrial export ventures: The role of resource inimitability and substitutability

Drawing on resource-based theory and insights from qualitative fieldwork we examine resource drivers of export venture performance in industrial firms using primary data from German and UK industrial-goods manufacturers. Our results indicate that while the levels of individual export venture resources are not directly related to export venture performance in the firms in our sample, many of the resources are related to two important characteristics of resources — namely the inimitability and non-substitutability of the mix of resources available to the export venture. Furthermore, we find that that resource inimitability and non-substitutability are directly related to export venture performance. Taken together these results demonstrate the important role that inimitability and non-substitutability play in mediating the resource-to-performance relationship in the industrial goods export ventures in our sample. Our study provides some of the first direct evidence supporting a key premise of the resource-based view of the firm — that the competitive imitability of a firm's resources and the inability of rivals to use substitute resources to execute a similar strategy are important drivers of firm performance.     

Using and Influence Level of Information to Explain the Non-consensus Process Loss

Much of the Group Support System (GSS) literature comparing GSS groups with manual groups has produced contrarian results. One of the more confusing is that GSS groups have a higher level of non-consensus than manual groups. Lack of consensus in GSS groups is considered to be a negative aspect of GSS. This paper argues that low levels of consensus are not necessarily harmful and should be expected given the assumptions about GSSs. This study uses an alternate measure to compare face-to-face groups with GSS groups; an influence level of information. Experimental results using an influence level of information show no difference between face-to-face group members and GSS group members. We discuss these implications, as well as additional directions for further consensus research.